Pre-Shipment Financing - Against Purchase Order or Letter of Credit

Pre-Shipment Financing (PSF) is a funding facility provided by Bank Danamon to the Customer before the Customer ship the item shipment or service finishing to the last buyer. The funding may be used for purchasing materials for preparing an order based on the purchase order (PO) from the last buyer or Letter of Credit (LC) that is issued by the Issuing Bank. After the shipment, this facility can be paid-off with Open Account Financing Seller or Outgoing Collection Financing or Letter of Credit Negotiation.

SERVICE BENEFIT

For the Customer:
Earning early funding for purchasing materials to prepare an order based on the Purchase Order or Letter of Credit.

SERVICE RISKS

The risk for the Applicant:
Late payment of basic fund and the interest, which the thing can be mitigated by adjusting tenure with the Customer’s working capital cycle and post-shipment financing facility.